Standard Life has increased investment fees for a small range of funds which don’t offer clean share classes.
Standard Life has found that a range of funds sold through its Wrap and Fundzone platforms, equivalent to around 1% of AUM, are not planning to offer clean share classes, according to Investment Week.
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The firm has also informed the clients the cost of remaining in such funds would increase greatly if they stop paying rebates on the funds from next year.
Effective from 28 December 2013, rebates on bundled funds will no longer be paid on Fundzone and rebates on bundled funds will be reduced to a maximum of 0.40% on Wrap platform in order to remove any income tax liability, before being switched off altogether at the end of January 2014.
Standard Life added that it would offer support to help advisers to switch clients to an unbundled alternative.
Standard Life said: "Clients continuing to invest in these funds will see a significant increase in investment costs as rebates are reduced."
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By GlobalDataFollowing the bulk conversions, trail commission payable on its ISA and Personal Portfolios will cease when the first fund in a portfolio is converted.
